Post on 21-Apr-2017
What Every Enterprise Architect Needs to Know about Workflow and BPMMichael zur Muehlen, Ph.D.Center of Excellence in Business Process InnovationHowe School of Technology ManagementStevens Institute of TechnologyHoboken NJMichael.zurMuehlen@stevens.edu
1
2
2
BPM is NOT about Technology
3
3
BPM is NOT about Creating Diagrams
4
4
BPM is NOT about Architecture
5
5
BPM is about Improving Business
6
BPM: The Business Value Question
BPM, BAM, BI, ESB, SOA, BLI, BLA,
BLUBB...
All IT is Initially an Expense
7
Information Technology
Business Value
crea
tes
enables
Process Change
All IT is Initially an Expense
7
Information Technology X Business
Value
What is BPM?
8
What is BPM?
8
Let’s start with the process definition:
A Business Process is the temporal and logical sequence of those activities that are necessary to manipulate an economically relevant object toward an overarching goal, creating value for a customer
What is BPM?Business Process Management is the collection of methods and tools that allow us to answer questions such as:
What are our processes?
How do we ensure their performance?
How do we maintain their compliance?
8
How do you make a Cup of Coffee?
9
Boil Water
Thirsty
Put Coffee in CupPut Boiling Water
in Cup
Coffee is Ready
Co
ffe
e L
ove
r
The Nescafè Process
10
Boil Water
Thirsty
Put Coffee in
Cup
Put Boiling
Water in Cup
Coffee is Ready
Fill Kettle
yes
no
Clean Cup
Yes
No
Kettle
empty?
Cup dirty?
Water is cold
Co
ffe
e L
ove
rD
ish
wa
sh
er
The Espresso Machine Process
11
The Starbucks Process
12
Order
cancelled
> 5 min wait
Barr
ista
Coffee S
hop
Cashie
r
Household
Thirsty
Collect
Payment
Go To Coffee
ShopOrder Coffee Pay for Coffee Take Coffee
Make CoffeeHand Coffee
To Customer
Payment
Order
cancelled
Insufficient Payment
Coffee
Order
> 5 min wait
+Done
Done
Leave
Discard Coffee
Done
Store Open
Take Order
BPM Questions
13
BPM Questions
13
How do we design and communicate this process?
BPM Questions
13
How do we design and communicate this process?
How do we perform this process well?
BPM Questions
13
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
BPM Questions
13
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
BPM Questions
13
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
How should technology support this process?
Types of BPM Projects
14
Source: Palmer (2007)
Types of BPM Projects
14
Source: Palmer (2007)
Scheduled Project Time during First BPM Project
15
Business CaseProject Team SelectionProcess DiscoveryDocumentationFunctional and Technical SpecificationTools Evaluation and SelectionImplementationTesting and DebuggingDeployment and Training
Source: BPTrends (2006)
16
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
17
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
Manage Change
Manage Execution
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
Integration Standards
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
Integration Standards
InteractionStandards
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
Integration Standards
InteractionStandards
StandardMetrics
18
BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
Integration Standards
InteractionStandards
StandardMetrics
AuditStandards
Enterprise Process Frameworks
19
BT Process Hierarchy
20
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
BT Process Hierarchy
20
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
WHATWHAT
BT Process Hierarchy
20
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
WHATWHAT
HOWHOW
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Top-Down Strategy
21
Process Groupings
Business Activities
Core Processes
Business ProcessFlows
Detailed ProcessFlows
Level A
Level B
Level C
Level D
Level E
Level F
Operational ProcessFlows
Strategic Processes/
Rule Description
Tactical Processes/
Rule Description
Operational Processes/
Rule Description
Strategy
BPM Application
Top-Dow
n Project
Process Architecture: BenefitsAllow to short-circuit process identification phase
Provide neutral map for navigation along processes
Standardize terminology across the enterprise
Enable benchmarking across organizations
Designed based on industry best practices
22
Roles &Responsi-
bilities
Process Owners
ProcessManagers
23
Process Architecture: Fortune 100Enterprise Process ArchitectureMethods Organization
Levelconcept
Conventionhandbook
Modelinghandbook
CorporateModelingService
Architecture ContentsGlossary and Data Structures
Common terminology that Business & Systems Analysts can refer to
Business Capabilities and Process Definitions
What capabilities do you have, and what processes do you support
Senior managers and business users have a common vocabulary of processes
Software purchases or outsourcing agreements are simplified
Consistency across business partners
Library of Cross-Organizational Messages
24
Example: ACORDInsurance Business is assemblage of standard process building blocks
Use for
Internal integration
Integration across distribution channels
Integration with third-party providers
“We are about the business content that goes into the process”
25
Process Framework BenefitsFrameworks save time
Coloring a picture vs. drawing a picture
Frameworks reduce riskIncorporate best practices
Frameworks enable business agilityProvide business context
Frameworks reduce costsEnterprise overview helps identify areas in need of improvement
Frameworks enable incremental development
26
BPM - Technical Evolution
27
28
The Role of BPM Technology
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.
The second is that automation applied to an inefficient operation will magnify the inefficiency.”
No BPM = Monolithic Enterprise Application
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
User Interface
Program and Logic
Internal Protocols are Proprietary C, C++, Visual Basic, Etc.
Built as a unit, Internals not visible
User Interface built in for all functions
In order to “extend” to a new function, need to call in a programmer...
BPM 1990: Workflow in the Brain
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
BPM 1993: Task Management
backgroundcheck
createaccount
checkguidelines
LaunchesUI
User accessesoriginal UI directly
Human BPM/Workflow:
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
BPM 1996: Workflow Routing
backgroundcheck
LaunchesUI
User accessesoriginal UI directly
Human BPM/Workflow:
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
createaccount
checkguidelines
BPM 2002: Services Integration
EnterInformation
Background Check
Conform
ance Rules
ApplicationLogic and
SOA
ServicesInterfaces
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
Reviewrules check
backgr. check
create account
UI connects user to BPMS, not the back-end
applications
BPM 2007: Composite Services
EnterInformation
Background C
heck
Rules
ApplicationLogic and
SOA
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite
Service
BPM 2007: Composite Services
EnterInformation
Background C
heck
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
ExtraAudit
Separation of ResponsibilityBusiness Retains Control of
Assignment of ResponsibilityGroups, Roles, SkillsDeadlinesAlerts, Reminders, EscalationsOrder of TasksAddition of Manual TasksUser Interface
36
IT Retains Control ofComputational LogicData RepresentationsScalability / PerformanceInteroperabilityMaster Data Management
EnterInformation
Background C
heck
New
Rules
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPEL
BPM Governance
37
38
Leveraging Vertical and Horizontal Expertise
Compare Sainsbury (2006)
Process Group 2
Process Group 4
Process Group 3
Process Group 1
Process Group 5
Product Line 1
Product Line 2
Product Line 3
Product Line 4
Product Line 5
Process Manager
Process Manager
Process Manager
Process Manager
Process Manager
39
Process OwnershipSource: Sainsbury (2006)
Focus Role Objective
BPM Roles - Example
40
Process Sponsor
Process Framework Executive
Process Executive
Process Owner
Process Manager(recommended)
Process DB Manager
Process Modeler
Strategic
Operational
SharedService
Responsible for ARIS
Modeling Processes
Implement & Optimize
Process Performance Management
Standardize & Optimize
Facilitate & Drive
Method & Compatibility
Level
Corp. Region Division
The BPM Maturity Model
Governance Method IT People CultureStrategic Alignment
Process Roles and Responsibilities
Process Design & Modeling
Process Skills & Expertise
Process Values & Beliefs
Process Improvement Plan
Decision Making Processes
Process Implementation &
Executions
Process Education & Learning
Process Attitudes & Behaviors
Strategy & Process Capability Linkage
Process Management
Standards
Process Improvement &
Innovation
Process Knowledge
Leadership Attention to
ProcessProcess Output Measurement
Process Metrics & Performance
Linkage
Process Control & Measurement
Process Collaboration & Communication
Responsiveness to Process Change
Process Architecture
Process Management
Controls
Process Project & Program
Management
Process Management
Leaders
Process Social Networks
Process Customers & Stakeholders
Business Process Management Maturity
Process Design & Modeling
Process Implementation &
Executions
Process Improvement &
Innovation
Process Control & Measurement
Process Project & Program
Management
Source: Rosemann & DeBruin 2006
Agile BPM MaturitySatisfying all 30 facets of the BPM Maturity Model takes a long time
A subset of the BPM Maturity model is needed to guide an organization toward a rapid deployment of BPM technology
Example: Staged Deployment of Maturity Initiatives
42
Modeling Tool Extended use of Tool
Choosing the Right StrategyThere is no single right pathway for all organizations
If command-and-control infrastructure: Methods come first, culture comes later
If participatory organization: Culture and people need to be nurtured earlier in the process
If centralized organization: Building a central repository can be undertaken early in the process
If decentralized organization: Leveraging individual projects to facilitate quick wins is important, but an integration strategy for the project results later on needs to be instituted early on
43
3 Challenges Ahead
44
45
45
50 Years of IT Lock-Down
45
Management by Magazine
45
Business People Acquiring IT Skills
46
Thank You – Questions?
Michael zur Muehlen, Ph.D.Howe School of Technology ManagementStevens Institute of TechnologyCastle Point on the HudsonHoboken, NJ 07030Phone: +1 (201) 216-8293Fax: +1 (201) 216-5385E-mail: mzurmuehlen@stevens.eduWeb: http://www.cebpi.org
Process Thought Leadership